Strategic Issue
In
my research, I found that Publicis Groupe recently acquired the Amsterdam based
digital agency LBi for 540 million dollars. In the article, it discussed a prospective strategic issue
in an otherwise beneficial deal.
LBi makes much of its profits in Europe. Europe is currently struggling economically and is
experiencing “stagnate ad spending.”
Could this be troublesome for Publicis down the road?
Customer/Consumer
Perceptions
From
the Facebook and Twitter pages of Publicis, it seems that consumer perception
is positive. I couldn’t understand
much of the Facebook page because it was in French. But I was able to find the Publicis USA twitter page and
they have a vast amount of followers and their Twitter presence is high. They tweet frequently and their content
is consistent.
Questions
Do you believe that the acquisition of LBi had anything to
do with keeping the agency out of the hands of Omnicom, who were looking to
purchase?
When acquisitions take place, does it ever occur that the
acquired company and an existing division within Publicis hold contracts for
competing brands? If so, what is
protocol in this situation?
Sources:
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